A startling finding of legal court documents might shed light on the origin of the LUNA and UST pricing drops.
According to the South Korean news outlet, Digital Today, the founder of Terraform Labs Do Kwon has apparently closed down two of its branches days before the demise of Terra (LUNA) and the stablecoin TerraUSD (UST).
On April 30, at the general shareholders meeting, Terraform Labs decided to announce that the company is dissolving its Seoul branch and Busan headquarters.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Invest in Crypto: 6 Rewarding Strategies (Animated)
On top of that, Terra is presently implementing a revitalization strategy based on the second amendment of Governance Proposal 1623. Terra stated in one of its tweets:
Back in 2018, Do Kwon established Terraform Labs with Ticket Monster founder Shin Hyun-sung. However, on March 2, 2020, Hyun-sung resigned, leaving Kwon as Terraform Lab's CEO.
On May 9, UST continued plummeting in value and lost its peg to the US dollar. As of now, it is trading at roughly $0.08.
However, Do Kwon reassured crypto traders that Terra Labs has a plan to save Terra. To do so, the CEO implied that the minting capacity will be increased from $300 million up to $1.2 billion.
Earlier this month, the co-founder of Terra (LUNA) Do Kwon was also issued a $78 million fine for avoiding taxes as he did not approve of the way cryptocurrency taxes were handled in the country.